Funding Crunch and Legal Disputes Test Equinox’s Growth Prospects

Heritage Dispute Clouds Hamersley Iron Ore Progress

Equinox Resources Limited continues to advance its 100%-owned Hamersley Iron Ore Project in Western Australia, a significant asset with an inferred mineral resource of 108.5 million tonnes at 58% iron. However, the project faces a critical legal hurdle as the company pursues a judicial review of the Aboriginal Cultural Heritage Committee's decision that blocked its proposed infill drilling program. The dispute centers on two ethnographic sites newly identified in 2023, which the Minister for Aboriginal Affairs declined to approve under Section 18 of the Aboriginal Heritage Act.

An independent heritage assessment led by Wayne Stevens of Judih Judih Pty Ltd has digitized native title archives and oral histories to clarify site boundaries, aiming to resolve uncertainties. The Supreme Court of Western Australia heard submissions in late September and has adjourned the matter to mid-October for further evidence. The outcome will be pivotal for the project's future exploration activities.

Rare Earth Discoveries Spark Strategic Interest in Brazil

Meanwhile, Equinox's Campo Grande Rare Earth Project in Bahia, Brazil, delivered encouraging exploration results. Reconnaissance surface sampling returned grades up to 17,346 ppm total rare earth oxides (TREO), with a high proportion of magnet metals such as neodymium, praseodymium, dysprosium, and terbium. Drilling confirmed near-surface mineralization with standout intercepts including 14 meters at 4,022 ppm TREO and 15 meters at 3,268 ppm TREO.

The project's proximity to Brazilian Rare Earths (ASX, BRE) and these promising grades have attracted inbound interest ranging from joint ventures to potential full sale. The board is actively reviewing strategic options while continuing exploration, signaling a potential shift in the company's portfolio focus.

Divestment and Corporate Reshuffle

In a move to streamline its asset base, Equinox executed a binding option agreement to divest its Alturas Antimony Project in British Columbia to Maxus Mining Inc. The deal, valued at C$700,000 in cash and shares, converts a non-core asset into liquid capital and equity exposure, allowing the company to concentrate resources on its core projects in Australia and Brazil.

Corporate changes also mark this quarter, with Ben Donovan appointed as Company Secretary and an announced transition in executive leadership. CEO and Managing Director Zac Komur will step down in early November but remain on the board as a non-executive director. The board has initiated a search for his successor, underscoring a period of strategic recalibration.

Financial Position and Outlook

Financially, Equinox reported a cash balance of AUD 926,000 at quarter-end, with exploration expenditure of AUD 568,000. The company’s cash runway is under one quarter at current spending levels, though management affirms plans to monitor cash closely and raise funds as needed. Payments to related parties totaled AUD 146,000 during the quarter.

With ongoing legal uncertainty at Hamersley and strategic options unfolding in Brazil, Equinox Resources stands at a crossroads. The next few months will be critical in determining the trajectory of its flagship projects and overall corporate direction.